Genomic Health, Inc. (GHDX) announced recently that it is confident of meeting the annual revenue guidance for the fiscal year 2009, ended Dec 31. The company expects to report revenues of $149.5 million for fiscal 2009.
This represents a 35% increase on revenues of $110.6 million reported by Genomic Health in fiscal 2008. Genomic Health further announced that it expects to report revenues of $39.5 million in the fourth quarter of fiscal 2009. This represents a 26% increase on revenues of $31.2 million reported by the company in the fourth quarter of 2008. However the preliminary revenues for the quarter would be affected adversely by payment delays of approximately $2.5 million, from Anthem Insurance Companies and the Blue Card program administered by Blue Shield of California. Genomic Health expects to receive the payments in early 2010. The contract with Anthem Insurance Companies, Inc., a subsidiary of one of the largest health benefit companies in the United States has been operative since Aug 1, 2009.
The expected figures are preliminary in nature. Genomic Health intends to announce actual results in early Feb 2010. The company will provide the annual 2010 guidance at the same time. Furthermore, the company announced that it delivered approximately 49,030 Oncotype DX test results in fiscal 2009 which represented a rise of 24 % compared to fiscal 2008.
Oncotype DX is the growth engine of the company. Oncotype DX launched in January 2004, is used on early stage breast cancer patients to predict cancer recurrence, patient survival within 10 years of diagnosis and benefits of chemotherapy.
Currently we are Neutral on Genomic Health.
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